FRC drops rule on forecasting

THE FINANCIAL Reporting Council (FRC) yesterday backed down on a plan to require auditors to make long-term predictions about whether companies will stay in business, after the industry complained the move was impractical.

The FRC alarmed accountants in January with plans to force them to say whether they were confident a company had enough resources to keep going for the foreseeable future, a major extension of auditors’ existing obligations.